Morgan Stanley raises target to SEK 95: Ericsson stock falls 1.92 percent

Published on 10/23/2026 at 10:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q3 adjusted EBITA reached SEK 10.12 billion, above SEK 7.93 billion consensus. Ericsson stock costs EUR 9.18 on October 23, 2026, below EUR 9.36.

Recent company signals

Morgan Stanley lifted its Ericsson target from SEK 90.00 to SEK 95.00 on October 19, 2026.
Third-quarter 2026 sales reached SEK 59.50 billion, with organic growth of 7.00 percent.
Ericsson stock trades at EUR 9.18 at 10:04 a.m. CEST at Lang & Schwarz on October 23, 2026, 1.92 percent below the Xetra close of October 22, 2026.

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Ericsson stock was trading at EUR 9.18 at Lang & Schwarz on October 23, 2026 at 10:04 a.m. CEST, down 1.92 percent versus the Xetra close of October 22, 2026 (EUR 9.36). On October 19, 2026, Morgan Stanley raised its Ericsson target from SEK 90.00 to SEK 95.00 while reiterating an underweight rating, MarketScreener reported.

Results show growth and pressure

Ericsson reported third-quarter 2026 sales of SEK 59.50 billion on October 15, 2026, up from SEK 56.20 billion a year earlier. Organic sales increased 7.00 percent, while adjusted EBITA came in at SEK 10.12 billion and adjusted EBITA margin reached 17.00 percent, according to the company release from Ericsson.

What does the result mean for margins?

The comparison is mixed. Adjusted EBITA fell from SEK 15.82 billion in the third quarter of 2025, while adjusted gross income increased from SEK 27.05 billion to SEK 28.35 billion. The company said higher component costs were a gross-margin headwind for next year, making cost control important after the 17.00 percent adjusted EBITA margin in the latest quarter.

Three dated events shape the stock

Ericsson reported SEK 59.50 billion of third-quarter sales on October 15, 2026, and announced a 7.00 percent organic sales increase in the same release from Ericsson. On October 19, 2026, Ericsson disclosed repurchases totaling SEK 391.82 million for October 12 through October 16, 2026, according to Placera.

Also on October 19, 2026, Morgan Stanley lifted its target to SEK 95.00 from SEK 90.00 and kept an underweight rating, as reported by MarketScreener.

Stock price sets the near-term frame

The euro quotation is 1.92 percent below the Xetra close, even as the latest quarterly report showed higher sales and organic growth. Ericsson's reported net income fell to SEK 5.80 billion from SEK 11.30 billion in the year-earlier quarter, partly because the prior-year earnings included a divestment gain.

Ericsson stock was trading at EUR 9.18 at Lang & Schwarz on October 23, 2026 at 10:04 a.m. CEST, 1.92 percent below the Xetra close of October 22, 2026 at EUR 9.36. The further course of trading is shown by the continuously updated real-time quote of Ericsson stock.